Markets
USD

U.S. GDP Tumbles 4.8% In First Quarter

(RTTNews) - U.S. economic activity saw a substantial contraction in the first quarter of 2020, according to a report released by the Commerce Department on Wednesday.

The report said U.S. real gross domestic product decreased at an annual rate of 4.8 percent in the first quarter following the 2.1 percent jump in the fourth quarter of 2019.

The decrease in real GDP in the first quarter reflected negative contributions from consumer spending, non-residential fixed investment, exports, and private inventory investment.

Meanwhile, positive contributions from residential fixed investment, federal government spending, and state and local government spending helped limit the downside.

Consumer spending plunged by 7.6 percent in the first quarter amid a steep drop in spending on services, led by health care, and goods, led by motor vehicles and parts.

The decrease in non-residential fixed investment primarily reflected a decrease in equipment, led by transportation equipment, while the decrease in exports primarily reflected a decrease in services, led by travel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

USD

Latest Markets Videos

    RTTNews

    Founded in the late 1990s by Andrew Mariathasan in New York, with the goal of covering Wall Street for a new generation of investors, RTTNews has expanded steadily over the years to become a trusted provider of content for a wide array of subjects across several platforms. RTT's Financial Newswire is relied upon by some of the world's largest financial institutions, including banks, brokerages, trading platforms and financial exchanges.

    Learn More